Which statement is correct concerning property dividends?
A)Issuing property dividends is a common method of distributing value to the shareholders.
B)A property dividend could be used to transfer assets from a subsidiary to a parent company.
C)Property dividends cannot be used by a parent company to distribute shares of an associate or subsidiary to its shareholders.
D)The historical value of the property is used for purposes of recording the value of the dividend.

Question

Quizplus · Accepted Answer

Property dividends can indeed be used to transfer assets from a subsidiary to a parent company. This method allows a company to distribute assets other than cash to its shareholders, which can include transferring assets from a subsidiary to a parent company as part of the dividend distribution.

Which Statement Is Correct Concerning Property Dividends